jAZ
02-21-2009, 09:18 AM
http://www.talkingpointsmemo.com/news/2009/02/topwrap_5-w_house_seeks_to_calm_on_banks_volcker_c.php
REUTERS
Reuters North American News Service
Feb 20, 2009 15:08 EST
* Volcker: Economy falling faster than in Depression
By Steve James
NEW YORK, (Reuters) - A top adviser to U.S. President Barack Obama said Friday the global economy may be deteriorating even faster than during the Great Depression, grim euro zone services and manufacturing data hit a record low, and Japan warned economic conditions were also worsening.
U.S. stocks dropped after the chairman of the Senate Banking Committee said it may be necessary to nationalize some banks. The White House sought to ease concerns on bank privatization.
Fears that a U.S. bank rescue plan might lead to nationalization and that the recession was worsening sent stocks lower, but markets eased in afternoon trading . Crude oil prices fell, while gold pushed through the $1,000 per ounce barrier.
"I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world," said Paul Volcker, a top aide to Obama.
Sen. Christopher Dodd said the nationalization of some banks could be needed "at least for a short time," according to a Bloomberg report.
The S&P 500 index nearly hit a 12-year low, and the Dow industrials hit six-year lows, prompting the White House to stress it strongly believed in a privately held bank system.
"Let me reassure as best I can on banks," White House spokesman Robert Gibbs told a news conference. "This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring they are regulated sufficiently by this government."
U.S. bank stocks were hard hit early in the session, with Citigroup, Bank of Americaand Wells Fargoall tumbling.
REUTERS
Reuters North American News Service
Feb 20, 2009 15:08 EST
* Volcker: Economy falling faster than in Depression
By Steve James
NEW YORK, (Reuters) - A top adviser to U.S. President Barack Obama said Friday the global economy may be deteriorating even faster than during the Great Depression, grim euro zone services and manufacturing data hit a record low, and Japan warned economic conditions were also worsening.
U.S. stocks dropped after the chairman of the Senate Banking Committee said it may be necessary to nationalize some banks. The White House sought to ease concerns on bank privatization.
Fears that a U.S. bank rescue plan might lead to nationalization and that the recession was worsening sent stocks lower, but markets eased in afternoon trading . Crude oil prices fell, while gold pushed through the $1,000 per ounce barrier.
"I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world," said Paul Volcker, a top aide to Obama.
Sen. Christopher Dodd said the nationalization of some banks could be needed "at least for a short time," according to a Bloomberg report.
The S&P 500 index nearly hit a 12-year low, and the Dow industrials hit six-year lows, prompting the White House to stress it strongly believed in a privately held bank system.
"Let me reassure as best I can on banks," White House spokesman Robert Gibbs told a news conference. "This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring they are regulated sufficiently by this government."
U.S. bank stocks were hard hit early in the session, with Citigroup, Bank of Americaand Wells Fargoall tumbling.